Southern Palladium secures mining right for Bengwenyama PGM project
The 30-year mining right clears the way for mine development at the Limpopo project after two decades of applications and engagement
South African mining company Southern Palladium has secured a mining right for its Bengwenyama PGM-Chrome project in Limpopo, clearing the way for the company and its Bengwenyama community partners to move towards mine development.
The Department of Mineral and Petroleum Resources (DMPR) granted the mining right after almost two decades of efforts to secure the project.
The right covers 5,280 hectares across the Nooitverwacht 324 KT and Eerstegeluk 327 KT farms in Limpopo and is valid for 30 years.
Bengwenyama is located in the Bushveld Complex, which holds about 72% of the world’s platinum group metal (PGM) resources and is one of the world’s most important PGM-producing regions.
“Securing the Mining Right moves Bengwenyama from planning to execution. It materially de-risks the project and allows us to accelerate workstreams that will support the completion of the DFS and preparation for mine development,” said Southern Palladium Managing Director Johan Odendaal.
“Combined with the recent strong metallurgical results, this approval provides confidence that Bengwenyama has the potential to become a long-life, world-class producer of both PGMs and chrome.”
Southern Palladium is progressing with its Definitive Feasibility Study (DFS) and preparing for early development work.
The company’s board has approved the start of early box-cut and decline development before the end of 2026, subject to the required waste management and water-use approvals.
Recent metallurgical test work has also highlighted the project’s potential to produce chrome alongside PGMs. At steady-state Stage 2 production, Bengwenyama is expected to produce more than 400,000 ounces of PGMs and about one million tonnes of chrome concentrate a year.
Southern Palladium Executive Chairman Roger Baxter said the mining right followed sustained engagement with the DMPR, regulators and the Bengwenyama community.
“The grant of the Mining Right is the result of constructive and sustained engagement with the DMPR leadership and regulators and the Bengwenyama community and demonstrates the strength of government support and our social licence to operate,” said Baxter.
He added that the project’s location in the Bushveld Complex gives it access to established geological, processing, smelting, refining and infrastructure advantages.
“The project is exceptionally well-positioned to deliver strategic, long-term value for stakeholders while continuing to prioritise responsible development and meaningful benefits for our partners, the Bengwenyama community as well as the broader region,” Baxter said.
